Closing PlansThree major cash and documentation requirements at the closing of the lease are:
- At least one month's rent pre-payment
- Security deposit
- Naming the landlord as insured party in the insurance certificate
Closing Time Typical Problems and Resolution
- Make sure that before the day of closing, CEO or other decision maker read and sign the lease. They should meet with attorney prior to closing date to discuss any changes or to have a better understanding of the implications before signing.
- Make sure that you make prior arrangement to meet the initial cash requirements.
- Tenant should send the insurance clause to its insurance agent prior to closing to insure that the certificate is obtained before closing. Do not wait until the day before closing to send the insurance clause in. Insurance certificates take several days to process
- Make sure that you get the Landlords legal name in writing from the landlords or from the landlord's representative to be included in the insurance certificate.
- Give bank adequate notice of due date so that the letter of credit will be obtained before closing.